Banks expected to maintain good performance in 2019

VNASunday, February 10, 2019 11:15

A majority of credit institutions in the country expect an upward trend in their business in 2019 after gaining good results last year, according to a State Bank of Vietnam (SBV) survey released recently.

A majority of credit institutions in the country expect an upward trend in their business in 2019. (Photo: VNA)

A majority of credit institutions in the country expect an upward trend in their business in 2019 after gaining good results last year, according to a State Bank of Vietnam (SBV) survey released recently.

Under the business sentiment survey, which covered domestic and foreign commercial banks operating in the country, 86 percent of credit institutions said their business situation improved in 2018, and 88 percent hoped it would continue to get better this year, of which 35 percent anticipated ‘significant improvement’.

A majority of the institutions also believe the banking system’s liquidity in terms of both the Vietnamese dong and foreign currencies will remain positive in 2019.

They said the rate of non-performing loans out of the outstanding credit balance was kept at a low level last year and tends to decline in 2019. They expect a growth rate at 13.9 percent for capital mobilisation and a credit growth rate at 15.27 percent by the end of this year, with faster growth in mobilised capital and credit in the Vietnamese dong.

The institutions added the business environment for them has been strongly improved since last year and more improvement was expected for this year.

About 80.7 percent of them predict the demand for banking services will increase, and clients will have the biggest demand for getting loans, making deposits and using payment services.

While 63.5 percent forecast overall risks of all client groups will remain stable in 2019, 15.3 percent said the risks are likely to decrease, the survey shows.

With optimism about growth prospects for 2019, banks also forecast the industry’s labour market to see positive changes in the coming months, of which some 76.74 percent of them plan to recruit more this year and 18.61 percent to keep the workforce unchanged.

Commercial banks have to adjust the limit of cash withdrawals in foreign currency abroad to the maximum equivalent of VND30 million (US$1,280) per day for international credit and debit cards from early this year to meet a central bank regulation.

According to Ms. Ta Thanh Binh, head of the Securities Market Development Department under the State Securities Commission, economic positive prospects this year will create great favorable conditions for Vietnam’s stock market.